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Global employment briefing: United Kingdom, May 2015

The Conservative Party won a majority in May’s UK general election. This win signals a change in direction for employment law policies, in particular, the promise of an EU in/out referendum by 2017 has significant implications given the impact of EU law on employment rights in the UK. In addition, attention will turn to the Party’s commitment to reform strike laws, particularly in essential services. Read our briefing for further information.

Holiday pay litigation continues

In October 2014 a British Employment Appeal Tribunal ruled that EU law can be read across into British law as to require employers to take into account non-guaranteed overtime payments when calculating pay for the basic four week holiday entitlement. In March this year, another British Tribunal reached the same conclusion in relation to commission payments and holiday pay. However, that case is now being appealed and the grounds of the appeal could affect claims that involve payments other than commission, including overtime cases. Read our briefing for further information.

Parliament finalises changes to employment law

A number of changes to employment law are expected in coming months, following their approval by Parliament at the end of March. They include provisions relating to zero hours contracts; public sector exit payments; restricting applications to postpone Tribunal hearings; fines for non-payment of Tribunal awards; increased fines for non-payment of the national minimum wage; equal pay and whistleblowing. Of particular concern to employers is a new requirement for larger employers in the private and third sector to publish details of their gender pay gap ie the difference in pay between male and female employees. The new rules will not apply to organisations with fewer than 250 employees, nor to most public authorities. The detail of the new requirements, including precisely what will need to be reported and where, will be determined following a public consultation. Read our briefing for further information.